Hi Mark, I am trying to understand the daily Treasury report and I have a question I hope you might be able to answer. According to the May 16th report, Treasury has issued $92.6 billion (fiscal yr to date) in nonmarketable securities, labeled "Government Account Series". My understanding is that this is intragovernmental debt (e.g. Social Security). Is that right? Since it is nonmarketable, does that mean it would not impact supply/demand dynamics in the day to day trading of treasuries? thank you
It is the treasury borrowing from social security. It is debt nonetheless - it does have to be paid back. It can’t be cancelled, or the taxpayer, instead of paying back the debt, would then have to pay the social security benefits they already paid into.
@@MarkMeldrum ok, thanks. what stuck out to me was that it seemed most of the Treasury issued debt this FY is non marketable, so I was curious the extent that impacts the supply/demand dynamics. Thanks again for the response.
Re ABR, you mentioned selling naked calls. Isn't that considered very risky if the company gets bought or the stock stays elevated for a longer period of time? Thanks.
